then what? Do I sync to my outlook? I haven't hooked the phone up to itunes yet.

At this point, my head hrts so bad from this I am going to just enter all my contacts by hand. I am just so frustrated right now by it all

I bet Droid is doing this on purpose to me

outlook has a import contacts feature and use that to import the file. then make sure you have icloud installed and all that synced.
but as others have said it sounds like you goofed something up getting gmail on your phone. Go into gmail on the web and help and it will show you step by step instructions.

I am so frustrated right now. I have followed every instruction and then some to get my contacts from my driod to my iphone. It keeps saying the password is wrong on the EXchange account.

It's tricky to tell form your posts. Were you just looking to transfer contacts or actually set up the Exchange account? If you do the latter you shouldn't need to transfer contacts or import/export, etc. They'll sync via ActiveSync.

I think I was actually trying to set up an exchange account. I would get everything done and then it would say wrong password. I tried all the stuff I could find. From all the research I was doing, it seems like it was a common problem. Some could fix it by checking settings or taking certain parts of their address out. Other just turned things on and off or reset passwords. I could do nothing!!!!!!!

But I got it all synced finally. Not through the Exchange thing but just regualr itunes. Everything came over nicely. And I am happy to not have to add all my contacts by hand.

But my head still hurts from it all. I think I spent a total of 3 hours on it in the end. Just for some darn contacts! Probably could have entered them by hand in that time!